Investing - Theory, News & General • Bogle and 9/11

In the aftermath of the September 11 terrorist attacks, Vanguard founder John "Jack" Bogle became a prominent voice of reason for panicked investors, famously urging them to "stay the course" amid extreme market volatility.

When the U.S. stock markets reopened on September 17, 2001, after a four-day closure, emotional selling triggered a historic plunge.

When trading resumed, the market suffered historic losses during the first post-attack week: The Dow Jones Industrial Average (DJIA) fell more than 14%.The S&P 500 Index dropped 11.6% (with an overall weekly decline of over 14%).The Nasdaq dropped 16%.

Total Value Lost: An estimated $1.4 trillion was erased from the U.S. stock market in the immediate aftermath. In October 2001, Bogle penned a widely cited perspective on how the attacks were impacting global finance.

“For the moment emotions have trumped economics as a driver of the stock market... I am impressed and delighted with the strength of our crew and our clients in the aftermath of the terrible, terrifying events of September 11. … We press on regardless and we stay the course.”

Bogle’s Core Philosophy During 9/11 Bogle used the tragedy to reinforce the core principles that defined his legacy:

Emotions vs. Economics: He reminded the public that while the geopolitical shock was horrific, long-term market valuations are driven by corporate earnings and dividends, not short-term panic.

The Certainty of Recovery: He correctly predicted that resilient markets would absorb the shock, recover, and eventually go on to reach new highs.

Against Panic-Selling: Bogle strongly advocated against trying to time the market or moving entirely to cash during a crisis, a philosophy that remains a bedrock rule for the Boglehead community today.

Statistics: Posted by FBN2014 — Fri Sep 11, 2026 11:27 am